Legal origin and financial development: A propensity score matching analysis

Glauco De Vita, Chengchun Li, Yun Luo

Research output: Contribution to journalArticlepeer-review


We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.

Original languageEnglish
Article numberIJFE2167
Pages (from-to)(In-Press)
JournalInternational Journal of Finance and Economics
Early online date9 Oct 2020
Publication statusE-pub ahead of print - 9 Oct 2020


  • financial development
  • financial institutions
  • financial markets
  • legal origin
  • propensity score matching

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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